Federal Reserve Board Chairman Speaks About Economy

By Daniela Salvador

July 17, 2012 Updated Jul 17, 2012 at 5:43 PM EST

Undated (Indiana’s NewsCenter) – The U.S. economy lost some of its speed in the first half of 2012, and the Federal Reserve Board is ready to step up, if needed.

The Federal Reserve Board Chairman Ben Bernanke delivered those remarks in his semi-annual monetary policy report, before the Senate Banking Committee.

Bernanke spoke about jobs, real estate, manufacturing and consumer spending. These topics are what investors were eager to hear more about, hoping Bernanke would signal that the Fed is ready to launch another round of bond purchases.

The bond purchases would help and encourage more borrowing and spending. However, the investors were not in luck.

"The Congressional Budget Office has estimated that if the full range of tax increases and spending cuts were allowed to take effect, a scenario widely referred to as the fiscal cliff, a shallow recession would occur early next year and about 1.25 million fewer jobs would be created in 2013," said Bernanke.

Though the chairman said the Fed is prepared to aid the economy, that's as far as his testimony went, providing no clues about what steps his office might take or if any action is imminent.




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